May 24, 2012

Fidelity Introduces Personal Trust Services for Broker Workstation

National Financial workstation offers suite as brokers vie for $3 trillion in assets

National Financial, the clearing and custody business of Fidelity Investments, announced Wednesday that it had integrated a suite of new personal trust services into its Streetscape broker workstation, including enhanced reporting capabilities, administrative trustee services and a trustee match program.

Personal trust assets are expected to swell to more than $3 trillion by 2019, and 72% of households with $1 million in assets use a personal trust services provider. In this environment, the new suite is designed to help brokers build stronger relationships with high-net-worth investors, and potentially generate new opportunities for incremental revenue growth and consolidation of assets.

Fidelity's Sanjiv Mirchandani“Integrating personal trust services into their broader service offering will not only help brokers bring on higher-net-worth clients but also provide them with more opportunity to build cross-generational relationships with their investors,” Sanjiv Mirchandani (left), president of National Financial, said in a statement.

He added, “This new personal trust services solution is a direct response to the evolving needs of our clients and their end investors—particularly as more boomers head into retirement—and reflects our ongoing commitment to delivering the products and services that can help them achieve sustainable growth.”

Broker-dealers are also recognizing that the addition of personal trust to overall brokerage service offerings can more effectively attract and retain top talent.

The new trust services program enhancements provide such reporting services as principal and income details, and the display on statements of assets that are held away. In addition, the setup allows brokers to serve as the primary relationship contact and provide investment management services.

Fidelity Personal Trust Co. acts as the corporate trustee, assuming custody, accounting, tax and discretionary responsibilities of the trust, while firms can manage customer assets themselves. Through the match program, brokers can find trust companies suitable for their clients’ needs, while gaining access to select federal- and state-chartered corporate trustees who delegate investment management functions to brokers’ firms.

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